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��ࡱ�>�� 68����5��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������_� ��bjbj .&bb�������||������������� ��t     ����������$v�( ���~��~~���  ��~� � �~��1 ������ w��������4�m�0,� �.� 1� �1<����s ���������~~~~��������������������������������������������������������������������� ���������| �: revised draft 17 march 2011 contact group on countervailing measures � proposals on new subsidy allegations and pre-initiation consultations the members of the contact group are australia, china, eu, india, japan and the united states. the group met internally on 21 february and 14, 17 and 18 march. the group also met with other delegations on 24 february and 16 march. these delegations were canada, egypt and turkey. the group considered china�s two textual proposals contained in documents gen/160 and gen/161. gen/160 china seeks a fresh application and investigation into subsidy programs not included in the notice of initiation. the group discussed whether the subsidized product or the subsidy programs were the subject of the cvd investigation and whether there is a distinction in the scm between the evidentiary standard for initiation and the scope of the cvd investigation. for example, whether a cvd investigation should be limited to the subsidy programs in the application. many agreed that ultimately the subsidization of the product needed to be considered. this would necessarily involve an examination of programs. as the examination of subsidization may involve a number of programs, some members noted that requiring a new application and initiation could change both the nature of the cvd investigation and possibly the concept of a subsidy overall. the issue of how it would be determined that the allegation relates to a new subsidy under the proposed article 11.x(4) was discussed. for example, further allegations could be made on the same program but more information may be supplied by the applicant. some members noted the subsidy notifications under article 25.1 would provide predictability to members on new subsidy programs. some members noted that the proposed article 11.y appears to write out article 11.6 of the scm relating to ex officio initiations. some members noted that the timeframes might prevent investigating authorities from effectively and expeditiously investigating and could prove more burdensome on both the respondent and the investigating authorities alike. in particular, some queried whether requiring a fresh application and investigation would result in increasing the burdens on respondents and investigating authorities. it was suggested that article 11.x(1) would not require the applicant to provide a new information on injury or causation. this in turn raised the question of whether this would thereby undermine the evidentiary standard of the application set in article 11.2. gen/161 china seeks the inclusion of special procedural requirements under article 13.1 relating to the invitation to pre-initiation consultations. specifically, china proposes that investigating authorities be obliged to identify all alleged subsidy programs and their legal bases and to provide documentary evidence. the group noted the importance of pre-initiation consultations both for respondents and investigating authorities and that these consultations should be meaningful. the group discussed whether the chair�s revised draft text for article 5.5 of the anti-dumping agreement could be relevant for transposition to the scm and thereby address china�s concerns (at least in reference to the first sentence of its proposed amendment to article 13.1). it was suggested that the full non-confidential application could be provided to the exporting member government within 2 days of the receipt of the properly documented application. subsidy notifications under article 25.1 would provide predictability to members on new subsidy programs. there was discussion over a number of terms used in the textual proposal that were currently ambiguous and required clarification, including �sufficient time�, �administrative record� and �fully consider�. some members noted concerns with the third sentence of the textual proposal, namely, the requirement �fully consider the points raised during the consultations and provide a written reply before initiation�). specifically, some members sought clarification of the nature of the �written reply� required from the investigating authorities. one member suggested that to address these concerns, alternative language to requiring full consideration could be to require an acknowledgement of the points raised during the consultations. there was also discussion on whether the proposal effectively amounted to a minor investigation prior to initiation and the impacts of the textual proposal on the conduct of the investigation. the timeframe for pre-initiation consultations was also discussed. it was suggested that, for example, there could be an obligation included for an invitation to consult within x days of receiving an application. there was also discussion of the evidence required for a cvd application as currently outlined in article 11.2 and how the proposed textual amendment would alter the evidentiary standard for applications. for example, whether the scope of the consultations is limited to the alleged programs in the application. discussion noted the ongoing role of consultations once an investigation may be initiated. it was suggested that article 13 could clarify the right of investigating authorities to request information necessary for the conduct of the investigation, including seeking clarification on the existence of alleged subsidies. there was discussion on whether article 13.2 was sufficient to make pre-initiation consultations more effective. it was noted that if it is unclear to the exporting government and exporters which are the alleged subsidies, exporters may refuse to cooperate.  7 � �    � � � � m�rvwx  ������./�������������������������������������h�j�h=2h�@�hrh�%��� �    � � � a } k m�ss�w����������������������� & fgd�@� & fgdr & fgdr & fgd�@�$a$gd�@�gdr$a$gd�@�  �d�����@���*���������������������� & fgd�@� & fgd�j� & fgd�@�gdr,1�h��/ ��=!�"�#��$��%����� ��^ 2���� 0@p`p������2(�� 0@p`p������ 0@p`p������ 0@p`p������ 0@p`p������ 0@p`p������ 0@p`p��8x�v~_hmh nh sh th @`��@ normalcj_hajmh sh th da ���d default paragraph fontri���r  table normal�4� l4�a� (k ���(no list pk!����[content_types].xml���n�0e�h���-j��@%�ǎǣ|�ș$�ز�u��l�tb� l,�3��;�r��ø��j��b $�g]��7o٭v��$��������� 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